The euro also gained ground today, hitting a new two-year high against the US dollar at $1.17.

Naeem Aslam of Think Market thinks the euro may head higher.

The biggest news for the European markets which improved the sentiment among investors was Greece returning to the bond markets.

The borrowing cost was much lower purely because the risk level is not the same where it used to be. The Greek news also provided fresh tail wind for the euro which broke its 2015 resistance.

Now the route is clear and the target which everyone is looking and talking about is $1.20 against the dollar. A few robust economic readings and some hawkish comments from the ECB would simply do the job. The DAX index particularly performed well today as the result for business confidence surged to a record highs for three months straight.

And that’s a good moment to stop. Thanks for reading and commenting. GW

“Greece’s successful return to the capital markets sends a clear signal that the country is finally turning a corner following its recent bailout programme. The level of investor appetite in the bonds will give Greece further confidence in its future finances.”

The return to markets was timed to take advantage of the drop in borrowing costs following the resumption of Greece’s bailout earlier this month. That, in turn, was the result of reform and austerity on the part of the Greek government and signs of an economic recovery.

However, McKeown reminds us that we have been here before. That 2014 bond sale was followed by the drama of 2015, when the left-wing Syriza government clashed with creditors and nearly took Greece out of the euro area.

Things look somewhat more promising this time around, she continues - Syriza has largely caved in to its creditors’ demands and the economy is growing again.

But a new government might fall out with Brussels, the ECB and the IMF - creating another crisis.

And even if it doesn’t, the Greek economy remains fragile - and another loan may be needed...

McKeown says:

Banks are in a very precarious state, with deposits yet to return and non-performing loans a serious burden. And crucially, the public debt mountain remains huge, at about 180% of GDP. The Greek government might therefore struggle to finance itself even at current market borrowing costs, which remain significantly higher than the average of 1.5% interest that it now pays on its largely officially-held debt. Unless euro-zone creditors agree to much deeper debt relief than that which is now on the table, it seems fairly likely that Greece will require a fourth bailout when the current one expires next August.

Firefighters protest in Greece, and museum staff are next....

Firefighters, demanding renewal of short-term contracts, have been out on the streets protesting this morning. The protestors, some in full rescue gear, demonstrated in front of the Greek parliament in Syntagma square demanding that some 1,320 workers be immediately re-hired.

Fire-fighters have been among those affected by the hiring freeze imposed by the country’s creditors in exchange for emergency bailout funding.

If that wasn’t bad enough .... to the consternation of Greece tourist confederation, striking cultural ministry officials have announced they will close ALL archaeological sites when they walk off the job this weekend.

The news has prompted the confederation’s head, Yiannis Retsos, to write a letter to the cultural minister, Lydia Koniordou, imploring her to intervene. The 48-hour closure of sites that belong to world heritage will be a huge blow for the nation’s reputation at the height of the tourist season, he argues.

Retsos wrote:

“Greece’s cultural treasures, are part of world heritage and one of our competitive tourist advantages. Archaeological sites and museums in Attica and Athens are one of the most basic reasons for the decision to make the journey.

For many travellers, visiting the sites is a life goal since they won’t have the opportunity to make such a journey again.”

The marble statue of Eros (L) stringing his bow stands among other statues at the Acropolis Museum in Athens. Photograph: Alexandros Vlachos/EPA